Algenol: Biofuels Digest’s 5-Minute Guide

Address: 28100 Bonita Grande Drive, Suite 200, Bonita Springs FL 34135

Year founded: 2006

Company description:

Algenol LLC is a global, development stage, industrial biotechnology company that makes biofuels and high-value industrial chemicals cost-effectively from abundant, renewable resources. Algenol uses hybrid blue-green algae and specially designed photobioreactors as a sustainable, proprietary platform for making its products from carbon dioxide, sunlight, and saltwater. The Company’s first product is ethanol for the biofuel and ethylene markets that it produces with its patented DIRECT TO ETHANOL® process

Major Investors:

Privately held

Type of Technology(ies):

The DIRECT TO ETHANOL® technology uses the power of the sun, carbon dioxide, seawater and hybrid algae to produce ethanol and other green chemicals.

Feedstocks:

Algenol hybrid algae use carbon dioxide as a feedstock.  The efficiency of carbon dioxide conversion to ethanol is quite high.

Products:

First product will be transportation ethanol for the growing fuel market. Algenol also has a small but focused group working on the green chemistry.

Product Cost (if applicable – per US gallon):

At commercial scale, Algenol intends to have capital cost between $4.00-$6.00 /gallons and operating cost under $0.90/gallon.

Past Milestones

In the first quarter of 2011, Algenol completed the construction of its 49,000 sq. ft. research facility located in Lee County.  This allowed Algenol to consolidate all its US operations that consist of engineering, aquaculture, physiology, analytical chemistry and molecular biology.

Construction on the 36 acre outdoor Integrated Biorefinery has begun in Fort Myers Florida (Lee County).

Algenol completed the acquisition of Cyano-Biofuels located in Berlin, Germany. The acquisition significantly increased Algenol’s research and development capacity and strengthened its access to European expertise in biotechnology and algal research.

Algenol completed an approximately $90 million private financing with a major multinational petroleum corporation that has become a new strategic partner for Algenol.

Future Milestones

Algenol intends to complete its DOE Biorefinery in 2013.  At full scale, the facility will consist of 17 acres filled with photobioreactors, and will produce 100,000 gallons of ethanol per year.

The company expects to have a commercial project producing ethanol by the 4th quarter of 2014

Business Model:

Algenol intends to either license its DIRECT TO ETHANOL® technology or contribute the technology for equity in production ventures with strategic partners.

Competitive Edge(s):

Algenol has pioneered the production of ethanol using cyanobacteria and has been issued several patents in the field.  Algenol’s unique photobioreactor and its energy efficient separations technology result in the DIRECT TO ETHANOL®  process having a net energy yield (energy out vs. energy in) of nearly 4 to 1.  This combination of factors leads to a target cost of production of ethanol below $1.00 per gallon.

In collaboration with Georgia Tech, Algenol has published its Life Cycle Analysis (LCA) in a peer-reviewed journal demonstrating an 80% reduction in its carbon footprint when compared to gasoline.

The company’s DIRECT TO ETHANOL® technology has a no harvest strategy.  Our hybrid algae acts as biocatalyst to fix carbon efficiently and produce our first molecule, ethanol.

Research, or Manufacturing Partnerships or Alliances:

Algenol has several collaborations with world-class companies and universities:

•       Linde AG

•       Valero

•       BioFields

•       Georgia Tech

•       University of Colorado

•       Florida Gulf Coast University

Stage:  

Algenol is constructing its DOE  Biorefinery which will produce 100,000 gallons of ethanol per year and consumes 2 tonnes of carbon dioxide a day.

Website URL:  Algenol’s website is here.